Japan economy shrinks in Q3 as natural disasters hit
Japan's economy shrank in the three months to September, official data showed Wednesday, after a string of natural disasters hit consumer spending and exports, and China's slowing economy cast a shadow.
Gross domestic product for the July-September period contracted 0.3 percent from the previous quarter, reversing growth of 0.8 percent in the April-June period, according to the government's Cabinet Office.
A number of natural disasters dampened personal consumption, company investment and exports, said Katsunori Kitakura, lead strategist at Sumitomo Mitsui Trust Asset Management.
"Natural disasters forced consumers to stay indoors and halted factory operations, which led to a slowdown in production and investment activities," he said in a commentary ahead of the data release.
Japan was hit by several natural disasters this summer, including massive flooding in western regions due to torrential rains, a typhoon that inundated a major international airport, and an earthquake in the north that disrupted supply lines.
The temporary closure of the Kansai International Airport led to a fall in tourism and overseas shipments, Kitakura said.
Exports of goods and services were down 1.8 percent from the April-June quarter, with private consumption slumping 0.1 percent and corporate investment in plants and equipment off 0.2 percent.
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